4 Ways to Help Your Mortgage Transaction Close On Time

July 8, 2016 by

4 Ways to Help Your Mortgage Transaction Close On TimeWhen you’ve finally found the home you’re looking for at the right price, it’s easy to think that the hard part is over; however, there’s still a lot to do in order to ensure your purchase goes through without a hitch. If you’re tying up the loose ends on your home purchase, here are some things you should do to avoid any unnecessary delays.

Hire A Legal Professional

However much research you may have done in regards to buying a home, there’s still a lot of legal jargon in the closing documents that can be difficult for most people to understand. Instead of doing guesswork, you may want to use an attorney who will take the difficulty out of the documents for you so there will be no holdups with the paperwork.

Arrange A Home Inspection

A home inspection is a necessary step before the sale of a home, but this is an important one to get out of the way because it can seriously impact your home purchase. Because major problems can often be discovered during inspection, getting this out of the way and deciding if an item should be fixed or the total price knocked down will ensure there are no delays at the last minute.

Acquire Title Insurance

In order to make sure your property really belongs to you, it’s a good idea to have a title search completed to see if there are any claims to your future property that could invalidate your purchase. As this is a legal safeguard for your claim to your home, it will help you avoid unnecessary issues in the event of an unknown property claim.

Determine The Closing Costs

An escrow company is responsible for holding the funds until all aspects of a home sale are complete, but there are fees that go along with this service. Before you get to the end of the process, determine what exactly the company will be charging so that you can be prepared for the final total. While fees are legitimate, if you see a higher tally than expected, you may want to negotiate for a reduced cost.

Purchasing a home is a significant investment full of hurdles you might not be aware of, but by acquiring title insurance and having a legal professional look through your documents, you can make your home purchase go a little smoother. If you’re planning on purchasing a new home soon, contact your local mortgage professional for more information.y want to

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The 4 Most Common Mortgage Questions, Answered

July 6, 2016 by

The 4 Most Common Mortgage Questions, AnsweredMaking the decision to purchase a home is one of the most significant investments most people will make in their life, and this automatically means there are a lot of questions that need to be answered before putting any money down. If you’re considering making the leap, here are some insights into some of the common questions you might have.

How Much Should You Put Down?

While many homebuyers have the option of putting as little as 3% down in order to purchase a home, there are benefits to saving up for a down payment and putting in 15 or 20%. Because your interest rate will be higher on a lower down payment, putting more down can mean a lower overall price tag and monthly payment.

Fixed or Variable Rate Mortgage?

While a fixed rate mortgage can be good for homeowners who are new to the market due to its stability, a variable rate can be hard to rely on because it can change all of the time. Fixed rates can end up costing more than variable rates in the event of low interest rates, but it’s important to determine your comfort level with the market is before deciding on your mortgage type.

How Will The Lender Assess You?

There are a number of different factors that lenders will assess you on including your income, personal debt load, employment and credit history. While it’s important to be in the good books for these reasons, a lower credit score does not mean you will not be able to qualify for a mortgage; it simply means that you may need to provide a higher down payment.

What Will The Monthly Payment Be?

One of the conundrums of home ownership is being able to determine what you’ll actually be paying per month to purchase your home, but this number is dependent on the size of your mortgage, your interest rate, and the frequency of your payments. There are also many handy online tools you can use to provide some estimates but it’s best that you consult your mortgage specialist about this.

Most homeowners, particularly those that are new to home ownership, have many questions when it comes to purchasing a home, but by being aware of what a lender looks at and what you should put down, you’re well on your way to a healthy attitude towards ownership. If you’re currently considering buying a home, contact your local mortgage professional for more information.

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What’s Ahead For Mortgage Rates This Week – July 5, 2016

July 5, 2016 by

Closing Paperwork: How to Read and Understand the Truth-in-Lending Disclosure StatementLast week’s economic events included S&P Case-Shiller’s Housing Market Indices for April along with reports on Construction Spending and Pending Home Sales. Consumer Confidence was higher in June in spite of low wage growth and inflation well below the Fed’s goal of 2.00 percent annually.

S&P Case-Shiller: Home Price Growth Ticks Downward

April home values grew by 5.40 percent in April on a seasonally-adjusted annual basis. Case Shiller reported a drop in momentum from the March reading of 5.50 percent according to the S&P Case-Shiller 20-City Home Price Index. While no city included in the 20-City Index reported lower home values, the rate of growth appears to be slowing. High home prices driven by high demand and slim inventories of available homes may continue to lose steam as high home prices coupled with stricter mortgage requirements sideline first-time and moderate income buyers.

Pending home sales in May saw their first decline since August 2015 According to the National Association of Realtors®, Pending sales dropped from April’s downwardly revised index reading of 115.0 to 110.8. Pending home sales were -3.70 percent lower in May as compared to April’s reading of +3.90 percent. The drop in pending sales, which represents homes under contract that are not yet closed, is largely blamed on markedly low inventories of homes for sale in many areas.

Construction spending was higher in May, but remained in negative territory with a reading of -0.80 percent as compared to expectations of +0.50 percent and April’s reading of -2.00 percent. While the overall reading appears unremarkable, residential construction spending was 5.30 percent higher in May.

Mortgage Rates Lower, Jobless Claims Rise

Freddie Mac reported lower mortgage rates in the aftermath of Great Britain’s vote to leave the EU. Rates for a 30-year fixed rate mortgage averaged 3.48 percent.15-year mortgage rates averaged 2.78 percent and the average rate for 5/1 adjustable rate mortgages was 2.70 percent. Discount points were also lower at 0.50, 0.40 and 0.50 percent respectively.

Jobless reports jumped due to the end of the school year; New York State in particular allows some workers to file jobless claims when schools are closed. 268,000 new jobless claims were filed as compared to expectations of 265,000 new claims and the prior week’s reading of 258,000 new claims.

Consumer confidence rose in June, but consumers were surveyed before the Brexit vote. Consumer confidence increased to 98.0 in June as compared to May’s index reading of 92.40.Stronger job markets and stabilized gas prices were seen as contributing factors that boosted consumer confidence.

What’s Ahead

Next week’s scheduled economic reports include several labor-related reports including Non-Farm Payrolls, ADP Payrolls, June’s national unemployment rate and minutes of the Fed’s last FOMC meeting. Freddie Mac’s survey of mortgage rates and weekly jobless claims will also be released.

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Pay Off Your Home Faster with These Mortgage Tips

July 1, 2016 by

Pay Off Your Home Faster with These Mortgage TipsThe monthly mortgage payment that goes into purchasing a home is frequently the most expensive cost per month that most people will incur, and that means that it can be helpful to know the tricks of the trade in squaring away this payment more quickly. If you’re looking for some simple tips to get your mortgage paid off a little sooner, here are some pointers that will help you get to this goal.

Make Bi-Weekly Payments

It may seems like enough of an expenditure to pay your mortgage once a month, but making payments every two weeks can actually greatly reduce the amount of interest you’ll end up paying. For example, if your monthly payment happens to be $400, this would equate to $4800.00 in payments for the year. However, if you pay bi-weekly, this will actually increase your payment per year to $5200.00. While it may not seem like a significant difference, this can break down the principal and save you a lot of money on interest

Pay It Off With Extra Funds

It can be so easy to get used to the standard payment schedule that putting extra money down just seems like a burden, but if you receive an inheritance, a raise or get a bonus at work, you may want to consider putting this extra money towards your mortgage instead of a splurge! While smaller monthly payments will decrease your mortgage over time, a lump sum can help you see the difference in your monthly payment right away, which is a boon for paying it down further.

Keep Up-To-Date On Your Mortgage Options

Many people would rather forget about their mortgage and stick to what they’ve worked out when all’s said and done, but it’s a good idea to keep abreast of what’s happening on the market in case it can positively impact your mortgage. By keeping up to date on interest rates and more recent mortgage options, you may be able to negotiate a better deal or at least stay on top of your monthly payments in the event of an interest rate increase.

The monthly mortgage payment schedule can be a bit of a burden for many people, but there are ways to pay off your mortgage more quickly that can easily improve your sense of financial wellbeing. Contact your local mortgage professional for more information.

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How To Host A Successful Open House

June 30, 2016 by

How To Host A Successful Open HouseFrom fixing up all the minor repairs to cleaning the house top-to-bottom, there are a lot of small details that go into organizing the perfect open house. However, in the rush to organize everything, there are a number of to-do’s that are easy to forget about. If you’re currently prepping your home and don’t want to miss the important stuff, here are some things you should contemplate before setting the date.

The Outside Look

The first thing potential homebuyers will notice when they arrive at your home is the outside, and that’s why it’s so important not to neglect it. Before organizing your open house, make sure the lawn is mowed, any unsightly hedges are trimmed and that your entrance area and flowerbeds are well maintained. Since potential homebuyers will see the outside before anything else, there’s no sense in losing them for having a disheveled lawn before they’ve even walked through the door.

Effectively Market The Event

Many home sellers want to believe that their house will sell itself, but if no one knows about your open house or bothers to show up, there’s no chance of getting any offers. While your real estate agent should be featuring your home on their website, you may also want to hand out flyers to your neighbors and make a few posts on social media sites like Twitter and Facebook to get the word out. There are no assurances when it comes to drumming up interest, but spreading the word with as many people as possible will likely find a few interested parties.

Use The Five Senses

It may not be the most common advice, but engaging potential buyers on a number of different levels can actually enhance the appeal of your home. Playing a little music can be a good way to make them feel comfortable, and you may want to do a little baking beforehand since the sense of smell can have a powerful impact. It may seem a little bit quirky, but there’s nothing to make people feel comfortable and at home like the scent of freshly baked treats and a little music.

There’s plenty of cleaning and organizing when it comes to an open house but it’s also important to look at the big picture when it comes to prepping for your home showing. If you’re nearly ready to put your home on the market, contact your local mortgage professional for more information.

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Evaluating Neighborhoods: 4 Things to Consider Before Purchasing a Home

June 29, 2016 by

Evaluating Neighborhoods: 4 Things to Consider Before Purchasing a HomeFrom finding the right agent to discovering the home you can truly feel comfortable in, there are a variety of things involved in the home buying process. However, it’s important not to get caught up in the home and ignore altogether the community you’ll be living in. If you’re planning a move to a new neighborhood, here are some things you should look into before putting in an offer.

Local Amenities

A peaceful, picturesque community is ideal, but if there are not a lot of resources nearby for your family, it’s possible that your new neighborhood may not be the best fit. Instead of having to get in the car and drive everywhere, ensure you research nearby community centers, green spaces and recreational spots so your family has somewhere to spend their weekends.

Research The Crime Rate

You can certainly get a good sense of the well being of a community just by looking at it, but be sure that you’re informed about exactly how safe the surrounding area is so your family will feel at ease in their new locale. While you can easily research the community and find information online, websites like Neighborhood Scout and Crime Report also make it simple to discover the less well-known details.

Transportation And Accessibility

A community you love is ideal, but if you work in the downtown core or an area far away, it will be important to determine the effect this will have on the length of your commute. In addition, you’ll want to be sure there are local transportation options like buses and shuttles that provide access all over the center in the event that it’s needed.

Learn About The Locals

There’s something to be said for the perfect home, but you’ll also need to feel a certain sense of comfort in the place you live so ensure you choose a place with nice neighbors and a community feel. This may seem hard to determine before buying a house, but try visiting the local community center or knocking on a few doors for a quick impression of what the locals are like.

It can be easy to throw everything else out the window as soon as you’ve found the perfect home, but it’s important that your home is situated in a neighborhood you’ll feel comfortable in. Contact your local mortgage professional for more information.

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3 Things to Consider Before Buying a Vacation Home Abroad

June 28, 2016 by

3 Things to Consider Before Buying a Vacation Home AbroadThe call of fancy vacation locations and the additional earnings that can come along with this type of home may appeal to many homebuyers, but a lot of time and money can go into maintaining a second property. If you’re currently considering a vacation home for your own use or as a potential investment, here are a few factors to consider before jumping into the fray of a long distance home.

Will You Use It Enough?

A home in a far-off place can be a great means of having a place to visit each year, but one of the problems with this type of home is that it often doesn’t get enough use to justify all of the associated costs. While things like timeshares can minimize this problem, buying your own home may mean that you’ll be compelled to visit quite frequently and you may feel the need to commit to one option when it comes to vacation time.

Do You Want To Worry About Maintenance?

Like any home, a vacation property is going to have both large and small maintenance issues that need to be fixed here and there, and this can be hard to get to if you live a 5-hour plane ride away. Maintenance isn’t necessarily a deal breaker when it comes to a second home, but you’ll want to determine if you’re willing to do the work when you’re spending time there or whether you’d rather hire someone who will do all of the little fix-ups for you.

Is It Really Affordable?

When going into an investment as significant as a home for pleasure, it can be easy for people to be obscured by what they want and not what they need, but this sometimes means people will take a financial risk. Instead of throwing caution to the wind, ensure you sit down and determine the monthly costs, maintenance fees and property taxes of your potential property. Determining how this lines up with all your other debts will help you decide if the purchase is really feasible.

Sunny beaches and trendy cities may seem like a foolproof investment, but it’s important to consider the cost effectiveness and all of the maintenance required before you commit to a second home abroad. If you’re currently looking for a home in an exotic locale, contact your local mortgage professional for more information.

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What’s Ahead For Mortgage Rates This Week – June 27, 2016

June 27, 2016 by

Whats Ahead For Mortgage Rates This Week May 18 2015Last week’s economic news was dominated by Great Britain’s vote to withdraw from the European Union. New and Existing Home Sales were released along with weekly reports on mortgage rates and new jobless claims.

“Brexit” Vote Tanks Stocks, Could Cause Lower Mortgage Rates

US stocks plunged in reaction to the news of Britain’s decision to leave the EU and the resignation of its Prime Minister. While investors don’t want to see their 401(k) values crash, mortgage rates may also fall as a result of “Brexit”. Fallout caused by economic uncertainty connected with Great Britain’s move to regain independence is expected to have lingering influence on global financial and economic developments in coming months and years.

Fed Chair Janet Yellen said in testimony before the Senate Banking Committee that Great Britain’s decision to leave the EU could have significant consequences. Chair Yellen’s comments were made prior to Friday’s announcement of Great Britain’s decision.

Existing Home Sales Highest Since 2007, Home Prices Continue Rising

According to the National Association of Realtors® May sales of pre-owned homes hit their highest level since February 2007. May’s seasonally-adjusted annual reading of 5.53 million sales fell just shy of analysts ‘expectation of 5.55 million sales, but exceeded April’s reading of 5.43 million sales. May’s reading represented a 1.80 percent increase in sales and a year-over-year increase of 4.50 percent.

Short supplies of available homes continued to drive up home prices according to NAR chief economist Lawrence Yun, who expressed concerns about affordability as home prices continued to outstrip wages and inflation. The national median home price was $239,700 in May, which was 4.70 percent higher year-over-year. Although first-time buyers typically represent about 40 percent of homebuyers, they currently account for 30 percent of homebuyers.

New Home Sales Fall in May

Sales of new homes slowed in May after jumping in April. According to the Commerce Department, sales of new homes fell by 6.00 percent on a seasonally adjusted annual basis. 551,000 new homes were sold against the expected reading of 560,000 new homes sold and April’s downwardly revised reading of 586,000 new homes sold. New home sales were 8.70 percent higher year-over-year in May.

Mortgage Rates Rise, Weekly Jobless Claims Fall

Last week’s mortgage rates don’t reflect the Brexit decision and rose slightly on Thursday. The average rate for a 30-year fixed rate mortgage was two basis points higher at 3.56 percent; the average rate for a 15.year fixed rate mortgage was also two basis points higher at 2.83 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at 2.74 percent. Discount points rose to 0.60 percent for a 30-year fixed rate mortgage but were unchanged at 0.50 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages.

What’s Ahead

Next week’s economic events include Case-Shiller Housing Market Indices, Pending Home Sales, Consumer Spending and Construction Spending

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How to Differentiate Your Home from the Neighbors for a Faster Sale

June 24, 2016 by

How to Differentiate Your Home from the Neighbors for a Faster SaleWhen it comes to selling your home, there can be a lot of options on the market, and nothing is quite so competitive as having your house listed right alongside the home of your neighbor. If you’re struggling with how to highlight your home to potential homebuyers, here are some things you can do to ensure it gets the attention it deserves.

Engage All The Marketing Options

Many people prefer their real estate agent to take care of the heavy lifting when it comes to selling a home, but there’s no reason you can’t go beyond the typical measures to really get potential homebuyers interested. Instead of leaving it up to a website or a sign on the street, send out flyers to all of your neighbors and utilize social media as a resource for getting the word out. You may also want to create a website for your home that will highlight its features in the best light.

Emphasize The Special Details

You may not think that the small things matter when it comes to selling your home, but the little details add up and they can actually make your home quite memorable to someone who’s seen a lot of open houses. Whether you’ve installed them or they were there already, your house probably has a special feature like brightly cultured kitchen tiles or an interesting light fixture; just ensure it’s effectively displayed and your home will stand out from the pack!

Clean Up The Curb

It’s possible that you have a stunning panoramic shot of your home from the outside, but if your house looks nothing like this when potential homebuyers arrive they’ll immediately be reconsidering the visit. Instead of leaving this to chance, make sure that you’ve done any minor repairs to the exterior of the house, cleaned up the lawn and organized everything so nothing looks messy or disheveled from the street. Your exterior will provide the initial impression, and nothing will make your home stand out from your neighbors like an immaculate facade.

It can be a struggle to know how to best display your house so it stands out, but by organizing the exterior and highlighting your home’s special features, you may be on your way to an ideal offer. If you’re getting ready to put your home on the market, contact your local mortgage professional for more information.

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What Young Buyers Want: 4 Home Must-haves When Selling to Millennials

June 23, 2016 by

What Young Buyers Want: 4 Home Must-haves When Selling to MillennialsMany millennials are set to flood the real estate market in the coming years to invest in a home of their own, but what is it that this group of young people is looking for in their property? From sizeable kitchens to a sustainable ethos, here are some of the things that will likely appeal to millennials searching for an ideal place of their own to settle.

A Suburban Location

There’s something to be said for city life, but many millennials are actually flocking to the safety and comfort of the suburbs in the hopes of finding more economical options for housing. With real estate prices going up all over and seeing even higher spikes in city centers, properties that offer a better price and a good-sized space are becoming a more desirable option.

A Carpet-Free Living Space

There was once a time when homes were carpeted top to bottom and it was considered the must have look, but in recent years hardwood has become all the rage with its easy-to-clean ability and durability. While there are many risks associated with carpet and its overall cleanliness, the low maintenance quality of hardwood is making it an absolute must for many homebuyers.

Smaller Is Better

The oversized mansion with 3 extra bedrooms, 4 bathrooms and a huge yard used to be something that many homeowners idealized and aspired to, but with the rising cost of real estate and the awareness of all that goes into a home, people are shirking off this old world fairy tale. As opposed to sizeable estates, most millennials would prefer a space they can feel comfortable in and also maintain at the same time.

An Up-To-Date Area For Entertaining

Small-scale homes certainly feed the necessity for open spaces, but it just so happens that many millennials are also looking for great spaces for entertaining and an open concept kitchen achieves just this. Instead of four walls and outdated appliances, millennials want stainless steel, a lot of countertop space and a place they can comfortably hang out with their family and friends for hours on end.

Many millennials are currently perusing the market for their ideal starter home, but smaller homes with an open concept are often better when it comes to catching the interest of this group of buyers. If you’re currently on the lookout for a great deal, contact your local mortgage professional for more information.

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